Wheat

Markets once again rallied amid the threat of dryness in the US. Key wheat-growing states continue to come under pressure from moisture deficits and the latest forecasts suggest dryness in these regions could persist over the next two weeks.

Elsewhere, the AHDB reports that lack of moisture in in Australia is expected to continue which will likely cause issues with wheat planting in the country and add stress to the emerging crops.

Maize

The latest USDA crop progress report shows 81% of the corn planted in the United States and around 50% this has emerged. Markets were bearish as this is above the four-year average of 47%.

Soya beans

The US and China agreed to suspend the implementation of tariffs which were due to come into force later this month. Markets reacted positively to the news. However, the latest USDA crop progress shows that 56% of the soya beans are planted – that’s up from the four-year average of 44%. Twenty-six per cent of the soya beans which are planted have emerged.

The AHDB reports that the Buenos Aires Grain exchange adjusted its estimates for the Argentinian 2017/2018 soya bean production to 36Mt, a 2Mt fall from the previous week. This is currently 3Mt below the USDA's latest estimates for soya bean production in Argentina.

European oilseed markets reacted positively to the news that the German cooperative DRV reduced its estimate of the size of the 2018 German rapeseed crop from 4.3Mt to 4.1Mt, the AHDB reports.

On the Euronext exchange (MATIF) in Paris, maize futures recorded a slight loss over the week while wheat and oilseed rape made strong gains.

Paris maize for delivery in November lost €0.75/t over the week to finish yesterday’s trade at €169.5/t.

Oilseed rape for delivery in November recorded a strong gain of €3.00/t to €361.25/t.

Wheat for delivery in December also recorded a strong gain of €5.50/t over the week to finish yesterday’s trade at €179.5/t.

Looking across the water to the Chicago grain market (CME), maize, wheat and soya beans markets recorded gains over the week. This serves to recoup some of the markets losses incurred last week.

2018 December futures now stand at $166.76/t and $204.30/t for maize and wheat respectively, up $3.78 and $9.55.

Soya bean futures for November delivery also recorded a strong gain of $5.81 to $381.47/t.

Read more

Supplies set to tighten but market still volatile

International grain markets: US planting progress puts pressure on markets